Doman Building Materials Hold Rating Kept at Stifel GMP After Q3 Results; Price Target Raised to C$6.50
07 Nov 2022
Stifel GMP on Monday maintained its hold rating on the shares of Doman Building Materials Group (DBM.TO) while raising its price target to C$6.50 from C$6.25 after the company reported better than expected third-quarter results.
"Doman delivered a strong 3Q22 print, highlighted by an 8.0% EBITDA beat vs. consensus, and net debt coming in 4.5% below our forecast. The company's inventory management has it well positioned to manage the upcoming decline in North American housing activity. Moreover, perceived risks relating to the refinancing of its $59 mm unsecured note due in October 2023 are lower post this print. We are increasing our target price to $6.50/sh while maintaining our HOLD rating," analyst Ian Gillies noted.